Texas Senate Bill SB597

Texas 2011 - 82nd Regular

• Out of Senate Committee: 3/28/11
• Introduced: 2/11/11
• Voted on by Senate: 4/5/11
• Refer: 2/17/11
• Out of House Committee: 5/19/11
• Report Pass: 3/28/11
• Engrossed: 4/5/11
• Refer: 4/14/11
• Report Pass: 5/18/11

Caption

Relating to the guarantee of open-enrollment charter school bonds by the permanent school fund.

Impact

If enacted, SB597 will significantly impact the financial operations of charter schools within Texas, allowing those meeting the prescribed financial standards to access better financing options. This change aims to ensure that charter schools can issue bonds at lower interest rates, which can alleviate fiscal constraints and enhance educational resources for students. The legislation aligns with efforts to provide charter schools with better fiscal support, mirroring resources available to traditional public schools.

Summary

SB597 addresses the guarantee of bonds issued by open-enrollment charter schools through the Texas permanent school fund. Specifically, it enables charter schools designated as charter districts to apply for guarantees on bonds, contingent on fulfilling financial standards set by the commissioner. The bill outlines that these standards require such charter schools to maintain an investment grade credit rating to ensure financial responsibility and reliability in borrowing against future revenues.

Contention

Points of contention surrounding SB597 include the implications of increased oversight and the requirements for board members of charter schools to prove U.S. citizenship. Some stakeholders argue that establishing strict financial criteria and transparency measures regarding governance can lead to bureaucratic hurdles that may stifle the operational agility of charter schools. Additionally, concerns have been raised regarding the broader impact on the funding dynamics between charter schools and regular public schools, particularly how the bond guarantees could affect the allocation of resources across the state's educational landscape.